Agenda Item No. 8B March 22, 2011

TO: Honorable Mayor and City Council Members Attention: Laura C. Kuhn, City Manager FROM: Cynthia W. Johnston, Housing and Redevelopment Director SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE

CONFIRMING ACCEPTANCE OF THE 2010 ANNUAL REPORT AND 2011 BUSINESS AND MARKETING PLAN/BUDGET AND THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE HOTEL BUSINESS IMPROVEMENT DISTRICT FOR 2011

APPROVAL OF RENEWAL OF THE VACAVILLE HOTEL BUSINESS

IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT BETWEEN THE CITY OF VACAVILLE AND THE VACAVILLE CONFERENCE AND VISITORS BUREAU, INC.

DISCUSSION: On February 22, 2011, the Council adopted the Resolution of Intention to levy and collect assessments within the Vacaville Hotel Business Improvement District (Hotel BID) for 2011, accepted the 2010 Annual Report and the 2011 Business and Marketing Plan/Budget, and scheduled a public hearing for March 22, 2011 to provide an opportunity for protest on the matter as required by State Law. Vacaville Conference and Visitor’s Bureau, Inc. (VCVB), under contract with the City, has administered the Vacaville Hotel BID and is approaching the completion of its seventh year of operation. In accordance with the Hotel BID renewal process, attached are the VCVB 2011 Business and Marketing Plan/Revised Budget (Attachments B and E), detailing the planned strategies, projects and operating budget for the upcoming year and the VCVB 2010 Annual Report (Attachment A). The Annual Report focuses on the following accomplishments:

• Publication of an annual visitor guide and family activity guide • Expansion of website including a calendar of events and hotel booking engine

(www.VisitVacaville.com) • Continuation of a social media marketing campaign on sites such as Facebook and

Twitter • Hiring of a new sales manager • Hosting the 2010 Senior Games • Launching a Local Restaurant week • Continued support of the Downtown Vacaville Business Improvement District and

Chamber of Commerce events • Sponsorship of the City photo contest • National Tourism Week familiarization tour and luncheon • Attendance at several national tourism conferences and active participation in several

tourism related organizations Last year, the VCVB was diligent in providing monthly reports to staff as requested. This allowed for better communication between the VCVB and staff regarding status of specific projects, activities, and upcoming events, and ensured staff had the most current information available.

Recently, staff has been meeting with one of the hoteliers within the Hotel BID to address operational concerns/suggestions and clerical/procedural oversights made by the VCVB during the past year. These issues relate primarily to less than accurate or incomplete note taking and non-financial record keeping mistakes, as well as conformance with the Brown Act. (Attachment D is a letter from the hotelier, with specific concerns, as well as suggestions or alternatives.) Some of these issues have been previously identified and/or are on-going. Staff will continue to work with VCVB staff to establish and follow strong administrative policies to avoid these issues in the future and to rectify concerns/issues as they occur. Additionally, the contract between the City and VCVB has been modified to strengthen the responsibility of the VCVB in these areas (Attachment C – Vacaville Hotel BID Management Agreement): • Clarifies membership and role of the Advisory Board, including process for submittal of

Business Plan • Refines the definition of a General Board quorum to require that when a quorum is present, a

majority of the voting members consist of businesses subject to the District assessment (hoteliers)

• Reinforces requirement to follow all applicable federal, state and local laws, rules and regulations including, but not limited to those relating to conflicts of interest, open meetings, and public records

It is recommended that all BID boundaries and assessment rates remain the same as the previous year. At its December 8, 2010 meeting, the Hotel BID Advisory and VCVB General Boards voted unanimously to recommend that the Council accept the 2010 Annual Report and the 2011 Business and Marketing Plan. At its January 12, 2011 meeting, the Hotel BID Advisory and VCVB General Boards voted unanimously to recommend that the City Council accept the 2011 Budget. Attached is the resolution confirming the 2010 Annual Report, approving the 2011 Business and Marketing Plan/Budget, and approving the levy and collection of assessments within the Hotel BID. The Housing and Redevelopment Commission recommended that the City Council approve the 2010 Annual Report and 2011 Business and Marketing Plan/Budget, renew the Hotel BID Ordinance, and renew the contract between the VCVB and the City at its February 16, 2011 meeting. Melyssa Laughlin, Executive Director of the VCVB, will present the VCVB 2010 Annual Report and the VCVB 2011 Business and Marketing Plan/Budget. FISCAL IMPACT: No General Fund Impact. Funding for the Hotel BID and Hotel BID Management Agreement (estimated at $230,000 for 2011) is generated from Transient Occupancy Taxes (TOT). TOT is a surcharge paid by hotel visitors and is calculated at 12% of the occupancy rate. Of this tax:

2% goes to Measure I 2% goes to Hotel BID 8% goes to City General Fund

12% TOT

RECOMMENDATION: By simple motion, adopt the subject resolution and approve the renewal of the Hotel Business Improvement District Management Agreement between the City and the VCVB. Attachments: A VCVB 2011 Business and Marketing Plan/Budget

B VCVB 2010 Annual Report C Vacaville Hotel Business Improvement District Management Agreement D Hotel BID Hotelier Concern Information Packet E Revised VCVB Budget (includes Emergency Reserve Fund)

RESOLUTION NO. 2011-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE CONFIRMING ACCEPTANCE OF THE 2010 ANNUAL REPORT AND 2011 BUSINESS AND MARKETING

PLAN/BUDGET AND THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE HOTEL BUSINESS IMPROVEMENT DISTRICT FOR 2011

WHEREAS, the City of Vacaville has the authority to establish a Business Improvement

District pursuant to the Parking and Business Improvement Area Law of 1989, section 36500 et seq. of the California Streets and Highways Code (hereafter “Act”); and

WHEREAS, the City Council has established a Business Improvement Area known as the Hotel Business Improvement District (hereinafter “District”), pursuant to the Act, by and through the adoption of Ordinance No. 1702 on February 24, 2004; and

WHEREAS, the District was formed to administer marketing programs to promote the City

of Vacaville as a tourism destination and to fund projects, programs, and activities that benefit hotels within the City of Vacaville; and WHEREAS, it is anticipated that the District will increase the occupancy of hotels, motels, bed and breakfast establishments, and other businesses providing lodging in the City that would not occur without such a District; and

WHEREAS, each District established pursuant to the Act requires an annual approval of the levy of assessments by means of submittal of an annual report and an annual business plan from the Advisory Board, adoption of a Resolution of Intention to levy and collect the assessments, a City Council public hearing, and adoption of a resolution confirming the annual report and approving the annual business plan and levying of assessments for each year; and WHEREAS, an annual report titled “Vacaville Conference and Visitors Bureau (VCVB) 2010 Annual Report” and an annual business plan titled “VCVB 2010 Business and Marketing Plan/Budget” have been accepted by the City; and

WHEREAS, the City Council proposes to levy and collect assessments for the District for 2011 as recommended in the VCVB 2011 Business and Marketing Plan/Budget; and

WHEREAS, the City Council by Resolution No. 2011-26, dated February 22, 2011, gave

notice of its intention to levy and collect assessments within the District for 2011; and WHEREAS, a public hearing concerning the levy and collection of assessments within the

District for 2011 was held on March 22, 2011, at 7:00 PM in the Council Chambers at 650 Merchant Street, Vacaville, California.

NOW, THEREFORE, BE IT RESOLVED that:

Section 1. The annual report titled “VCVB 2010 Annual Report” for the District is hereby confirmed by the City Council.

Section 2. The annual business plan titled “VCVB 2011 Business and Marketing

Plan/Budget” has been accepted by the City Council and a copy is on file in the City Clerk’s office at City Hall. Said report contains a description of the proposed improvements and activities, the boundaries and benefit zones, and the basis of assessment for 2011.

Section 3. Approval of this Resolution shall constitute the levy and collection of assessments for 2011 on all hotels and motels, existing and future, within the City of Vacaville at the same rates and classifications as for 2010.

Section 4. This resolution shall take effect immediately upon adoption.

I HEREBY CERTIFY that the foregoing resolution was introduced and passed by the City

Council of the City of Vacaville, at its regular meeting of March 22, 2011, by the following vote.

AYES: NOES:

ABSENT: ATTEST: _______________________________ Michelle A. Thornbrugh, City Clerk

About the Industry EXAMINING CURRENT INDUSTRY TRENDS At this year’s Marketing Outlook Forum, Travel Industry researchers presented their forecasts for tourism in 2011. A la David Letterman's famous Top Ten lists, here are their top 10 trends for travel and tourism in 2010 and 2011, based on information shared at the Forum. Trend #10: You call this a recovery? The economy has apparently turned the corner but it is not supposed to look (and feel) like this! According to Adam Sacks, Managing Director of Tourism Economics, business conditions remain favorable and profits have been strong. Businesses have substantial cash reserves, which they are expected to begin to put to use in the near-term. We already see some positive impact of this on business travel. Similarly, many consumers have the ability to spend, with private payrolls slowly rising and household wealth beginning to recover. And retail/foodservices sales are showing moderate improvement (up 0.6% in September over August and 7.3% above September 2009), according to the U.S. Department of Com-merce. But, the housing sector remains a key problem, as well as corporate and consumer uncertainty that is slowing the recovery. Oxford Economics currently forecasts growth of 2.6 percent this year and 2.5 per-cent in 2011. Trend #9: It's the consumer, stupid! Despite the more positive economic picture, many consumers apparently just don't believe that the reces-sion is really over. The Conference Board's recently released October Consumer Confidence Index posted a value of 50.2, up modestly from 48.6 in September – very weak by historic standards and well below 90, which generally signifies a healthy economy. And Americans' self-reported discretionary spending during the first four weeks of October was up only slightly from September and remained far below 2008 spending levels.

Regarding travel attitudes, the October wave of travelhorizons™ that we co-produce with YPartnership showed that after falling to its lowest point in more than a year, the Traveler Sentiment Index™ (TSI) – a derivative of six travel-related attitudinal variables – remained essentially unchanged from our July meas-ure. The TSI now stands at 87.2 (compared to a base of 100, established in March 2007), up marginally from July but down from the 90.5 observed in October 2009. The October survey revealed a substantial de-cline in the perceived "affordability of travel" over the past year, reflecting the reality that travel prices are rising, up 4.2 percent through September (as compared to only a 1.8% gain in the TPI overall), according to the U.S. Travel Association's Travel Price Index. While hotel rates are recovering only very slowly, air fares are on the rise, as are gasoline prices.

Trend #8: Travel is finally getting off the bottom! 2009 was a year of major retrenchment for the U.S. travel industry – the worst we have seen in a very long time (maybe the worst year ever). In total, U.S. domestic travel declined 3.4 percent in 2009, according to U.S. Travel's latest projections and forecasts. Last year, leisure travel held up better than business travel, and domestic travel outperformed inbound international visitation. And, visitor spending was depressed even more. Domestic travel spending was down nearly 8 percent in total in 2009, while international in-bound visitor spending plummeted 14.4 percent. Conditions have improved considerably so far in 2010, especially during the first two quarters of this year. U.S. Travel now projects that domestic leisure travel will increase 2.8 percent this year, while domestic busi-ness travel grows even more, 4.2 percent. International inbound travel should increase by a much more ro-bust 8 percent. And we expect to see spending increases of 7.2 percent domestically and 7.9 percent among our international visitors.

Trend #7: Leisure travel – the slow road back Leisure travel first began to weaken during the summer of 2008 and has continued to decline. But, on a more positive note, leisure travel intentions are up modestly – 55 percent of U.S. adults now say they intend to take a leisure trip between November 2010 and April 2011, up slightly from the same time last year, ac-cording to travelhorizons™. Further, there are some 49 million U.S. adults who have yet to decide whether or not to take a leisure trip during the next six months – providing a great opportunity to influence the deci-sions of those "undecideds." There are also signs that that Americans may be ready to open their pocketbooks a bit more on these future trips – with small increases evident in the share who expect to drive longer distance, stay more nights away from home and spend more on food and entertainment, hotels and overall. Trend #6: Business travel is climbing by the seat of its pants! The number of unique business travelers has declined rather substantially over the past few years – from the 40 percent of American adults who said in October 2007 that they took a business trip in the past 12 months to the 23 percent who said this in October 2010, according to travelhorizons™. The average num-ber of business trips taken by type is similar this year to last, although there has been an increase in the number of transient business trips per traveler being taken, while trips for other business purposes have declined. So, fewer people are traveling on business. And among those travelers, they are attending fewer company business meetings, conferences, trade shows, etc., but taking more transient business trips each – this av-erage rose from 6.9 transient trips per traveler last year to 8.4 this year. This appears to reflect the current focus in American business to continue to push for productivity gains. Rather than hire more sales repre-sentatives, for example, who could make these additional sales calls, they are looking for the ones who are still employed to just do more. Trend #5: The hotel industry is showing positive performance According to Smith Travel Research (STR), hotel demand (room-nights sold) has increased significantly this year, with gains outpacing the declines experienced last year. Recovery in hotel demand has been building all year and, in fact, rose nearly 9 percent this past summer to the highest summer level ever recorded. This demand recovery is coming primarily from the upper-end chain segments, reflecting improvement in the cor-porate travel segment. But while hotel demand is up, room rates, while improving, are still depressed and have a great deal of ground to make up. And it is demand and occupancy that are driving these improvements in Revenue Per Available Room (RevPAR), not rates. While average daily rates (ADR) have increased the last four months in a row, they are generally not back to pre-recession levels. It's going to take quite some time to get there. Until hotel operators can gain back pricing power, the industry nationwide can't expect a true recovery. STR has updated its forecast for the U.S. lodging industry quite often this year, each time making it more positive – at least on the demand side. For full year 2010, STR is now projecting a 6.6 percent increase in room demand and, when coupled with a much smaller 2.2 percent gain in supply, will push occupancies up 4.4 percent this year. No real growth in ADRs over last year, however, is expected, which will keep RevPAR gains also to about 4.3 percent. For 2011, demand growth is expected to slow, but the best news is that ADR growth will finally cross over into positive territory with hotel room rates now forecasted to rise 3.9 per-cent next year, and with this RevPAR should also be up a strong 5.3 percent in 2011. Trend #4: Transportation demand unsettled Some modest improvement is apparent in the transportation data in recent months (see dashboard). In the fiscal year ending in September, Amtrak outshined other modes, serving a record 28.7 million riders, an in-crease of 5.7 percent over FY 2009. Ticket revenue grew 9 percent. Auto travel remains marginally better than last year with rural arterial vehicle miles (a measure of non-local highway traffic) up about 1 percent year-to-date. And U.S. air travel has also been slowly recovering, although international air traffic to and from the U.S. has been stronger, up more than 5 percent year-to-date through September versus remaining virtually flat for domestic enplanements, according to the Air Transport Association.

Trend #3: International visitors – welcome back! The past few years have been as challenging for global tourism as it has here in the United States. According to the U.N. World Tourism Organization, total world arrivals fell more than 4 percent. Here in the U.S., the Of-fice of Travel and Tourism Industries (OTTI) in the U.S. Department of Commerce reports that in 2009, total international arrivals were off about 5 percent, with the greatest weakness in some of our traditionally best Eu-ropean markets such as the UK, although declines were apparent pretty much across the board. But this situa-tion has improved quite dramatically. Through July, total international arrivals in the U.S. are up 12 percent with countries like Japan, South Korea and Brazil showing the greatest growth. OTTI expects a 9 percent increase in inbound tourism to the U.S. in 2010, followed by a 6 percent gain in 2011. The Asia/Pacific and South American markets will continue to out-perform European markets, which are expected to remain quite weak. Travel from Asia is forecasted to grow 19 percent in 2010 and 10 percent in 2011, and travel from South America should be up about 16 percent this year and 10 percent in 2011. Longer-term, expect to see continuing major growth from emerging travel markets such as China and India but much slower growth in our mature origins such as Canada and Mexico, although they will remain our largest inbound markets. Growth will also be relatively slow from Europe. With passage of the Travel Promotion Act and the new Corporation for Travel Promotion board in place, we have a great opportunity to jump start this growth, although it is unlikely that we will see any major impact from international promotion of the U.S. until around 2014. Trend #2: Doing more with less We all have had to do much more with less over the past few years and may have to continue to do so for some time to come. For example, since FY 2008-2009, state tourism office budgets have declined significantly – down 13 percent last year and another 11 percent this year. We at U.S. Travel are working with our state and destination colleagues to identity more effective ways to convince their local and state legislators that trav-el and tourism is a revenue generator and funding of marketing programs should not be on the chopping block. Rather, due to the positive ROI, destination budgets should be restored or, at a minimum, sustained. In an environment such as we have been in, marketing is really more important than ever. But it is not just about how much you have to spend, it is about how you spend it. So, understanding your brand and how the consumer sees it, how your potential visitors/customers use various materials to make decisions and plan their trip and how to integrate all your marketing efforts is critical. And, consider new ways to bring travel alive with video, sound, tools and interactivity. Trend #1: 2011 will be a better, but not a great year I think it is clear that things will gradually improve this year and next, but slowly and tentatively – and we could see some additional setbacks along the way. Our forecast for 2011 calls for growth to slow a bit as compared to 2010 but to still be positive – up 1.5 to 2.5 percent for domestic leisure and business travel and up about 4 percent for international inbound. Our international forecast is somewhat less bullish than OTTI's but in the same direction and of similar magnitude. Spending will also rise for both domestic and international visitors next year – up 4.5 percent and 10 percent, respectively.

About the Vacaville CVB

Vacaville CVB Mission Statement

The mission of the Vacaville Conference & Visitors Bureau is to market the City of

Vacaville as a “first choice” visitor destination to business and leisure travelers by

promoting an awareness of the city’s unique location, image, businesses and indus-

tries and by providing requested support to the city’s economic development ef-

forts.

Organizational Summary

The Vacaville Conference & Visitors Bureau was created to promote Vacaville as a

tourism destination. The organization is supported through a 2% assessment fee

charged to overnight visitors in the city’s 14 hotels under a Business Improvement

District with the City of Vacaville.

The VCVB is a non-profit 501 c6 organization committed to providing support, edu-

cation, and opportunity to the tourism industry and the community at large.

The organization is governed by a Board of Directors which is made up of six as-

sessed members (hoteliers) and four associate members (Chamber of Commerce,

Downtown Vacaville BID and two Community Members at Large.) The Executive

Committee is made up of a Chairman, Vice Chairman, Secretary, Treasurer and Di-

rector at Large.

Day-to-day operations are managed by the Executive Director and staff which in-

clude a Sales Manager and Office Manager.

The VCVB offices are located at 1671 Monte Vista Avenue, Suite N112 in the Nut

Tree Village.

Executive Summary

During the past few years, many Conference & Visitors Bureau’s have begun to question our rel-

evancy and place. With more and more people planning their travel online, CVB ’s are constantly

dis-intermediated.

At our core, CVB’s are intermediaries, we put buyer and seller together. We don’t own the prod-

uct we sell, thus we have little control. We don’t own the meeting space, hotel rooms, or attrac-

tions, but we are accountable for the sale.

In all honesty, as an industry, we have done little to help ourselves, we can’t even agree on what

we should be called. Conference & Visitors Bureau, Tourism Authority, Visitor & Convention Bu-

reau. Huh? No wonder more visitors and businesses are not aware of us, our services or just don’t

want to take the time to find out what the tourism organization is called in each destination.

As the world changes, it behooves all of us to take a look at the way we do business and look at

our relevancy. While there is no question that CVB, TA’s or VCA’s make a positive impact on the

communities they serve, how do we now define our success?

One move the industry has made is to coin the name “Destination Marketing Organization” or

“DMO” to encompass all organizations with the purpose of “selling” the destination. Most interest-

ing is that this moniker calls CVB’s “Marketing” organizations, not “Sales” organizations.

In reality, the fact that DMO’s do not wield control over the products we sell means our real im-

pact comes from our marketing efforts. In a city that has little meeting and event space, our re-

sources may be much more wisely spent developing marketing strategies that reinforce or en-

hance our destination awareness and appreciation…..and intent to travel. Our hotels are vigorously

selling their meeting space, and we are right next to them, selling their meeting space. So, who is

selling the concept of the destination? And if no one is selling the notion that our destination is

worth considering, how will all that selling succeed?

While I am not suggesting that the sales function of a DMO is not important to our destination, it is,

and always will be an integral part of a DMO’s overall efforts, it is more about performance

measures. As you read through this plan you will see that we are spending time and resources on

a number of different marketing programs. Unfortunately, the results of these programs are, for

the most part, untrackable. Does these mean that these efforts do not effect visitation to

Vacaville? We think not, in fact, we believe the largest impact we make to our city is through our

marketing efforts.

In effort to better clarify who we are, the Vacaville CVB will consider a move to the name “Visit

Vacaville”. We feel that this name is more consistent with the bureau’s mission and goals and

gives the visitor a better understanding of who we are and what we do.

Melyssa Laughlin

Executive Director

Vacaville Conference & Visitors Bureau

2011 Board of Directors & Staff

Executive Board Chairman—Andrea McPeak, Courtyard by Marriott

Vice Chairman—Himena Patel, Comfort Suites

Secretary—Kurt Helmke, Fairfield Inn & Suites

Treasurer— Shawn Lum, Vacaville Museum

Director at Large—Roman Garcia, Best Western Heritage Inn

General Board Board Member—Kimberly Davis, Residence Inn & Suites

Board Member—Margo Foster, Nut Tree

Board Member—Robert Brown—Hampton Inn & Suites

Board Member—Andrew Swanson—Nut Tree Airport

Board Member—Bill Bollman—Stars Recreation Center

Ex-Officio—Mark Creffield, Vacaville Chamber of Commerce

Ex-Officio—Bruce Newton, Downtown Business Improvement District

Staff Melyssa Laughlin—Executive Director

Alex Hall —Sales Manager

Julie Sabbagh—Administrative Assistant

Destination Marketing The Vacaville Conference & Visitors Bureau is dedicated to finding new and inno-

vative ways to promote Vacaville as a destination of choice. We must always ask

the question: How do we stand out?

With so many destinations featured in travel print, articles and advertising, it

seems as if every city in the world has caught on to the fact that tourism is good

for the economy. As Vacaville has seen over the past few years, investment in

tourism marketing works by generating much needed tax dollars to sustain a bet-

ter quality of life for residents. Therefore, we are very conscious that our efforts

benefit the community as a whole.

In 2011, focus areas will include:

Harness the power of social media to connect with large numbers of po-

tential visitors.

Use website capabilities to contact individuals based on interest through

email marketing campaigns.

Extensive Media outreach

Increased marketing efforts within Vacaville

Discount programs

Continue to educate anyone that will listen about the impact of tourism.

Citywide customer service training

Vacaville’s unique assets, great weather and outstanding location help position

the city as a destination for both business and leisure travel. The VCVB pro-

motes;

Proximity: Central location, close to airport, short distance to Napa, San

Francisco and Sacramento.

Affordability: Services less expensive than competitors.

Weather: 300+ days of sunshine per year

Hotels: Range of properties from budget to select service

Key assets: Vacaville Premium Outlets, Nut Tree,

cultural & historical attractions, Downtown Vacaville,

outdoor recreational opportunities.

Sports: Number of fields and parks, Vacaville Ice Sports, Walter

Graham Aquatics Center, Soccer Nation, Golf, Cycling.

Family Friendly: Large number of family oriented activities and attractions.

Advertising

Goal:

Develop an advertising plan that will generate consumer requests, meeting

leads, visitation to website, increased visibility and drive an increase in

room nights booked in Vacaville.

Strategy:

Although the Vacaville CVB will be cutting back on print advertising this

year, our goal is to strategically place ads that will give maximum

exposure and return on investment.

Action:

Consumer

California Visitor

Guide

Central Valley

Visitor Guide

VIA Magazine

Website Goal:

Provide a fresh, interactive and consistently current website that is user friendly to all

of our clients while increasing visitation and information requests through the internet.

Strategy:

The Vacaville Conference & Visitors Bureau will work with our website marketing

partner, TIG Global, to enhance our website and continue its expansion. The site will

contain the city’s most current information and response mechanisms designed to allow

visitors to request information, contact staff, download our visitor guide and submit

leads through our online RFP form. The VCVB will also use 10+ alias URL’s that will

allow us to track the success rate of our marketing programs. The website will be mar-

keted through Search Engine Optimization and Pay-per-click programs to create top

placement in major search engines such as Google. In 2011 the VCVB will continue the

use of both online surveys and polls to gauge visitor interest in Vacaville and VCVB

services.

Action:

VisitVacaville.com—Main

website domain

Search Engine Optimiza-

tion

Seasonal pay-per-click

campaign

Online request for infor-

mation forms

RFP submission for group

leads

Use Constant Contact to send monthly electronic newsletter and targeted email mar-

keting campaigns.

Online video

Online media sections with press releases and downloadable press kit

Use E Paper Flip Media to allow guests to download and flip though visitor guide

online.

Social Media One of the most exciting things to happen to DMO’s in the past few years is the

rise of social media. With so many tourism organizations feeling the pinch of a

tight economy, we have all had to become that much more creative in the mar-

keting of our destinations.

Due to the nature of social media, there is little to no cost involved in using

programs such as Twitter and Facebook to post information about our destina-

tion. While there is the cost of staff time to constantly monitor and update these

accounts, it has given smaller bureau’s the opportunity to compete with larger

destinations.

These are just a few of the reasons the Vacaville CVB is launching a full scale

social media campaign in 2011. This campaign will include daily postings to

Twitter and Facebook, Vacaville photos on our Flickr Account, You Tube vide-

os and all staff will have LinkedIn Profiles.

Throughout the year we will be running Facebook contests to increase our fol-

lowing and participation. Contests will include event ticket giveaways, hotel

stays, locally made products and items from our upcoming Vacaville souvenir

line.

On the homepage of the VCVB website, visitvacaville.com, we now feature a

live feed of all of our social media accounts. Additionally, all of our social media

accounts drive traffic back to our website. The hope is that the cross promotion

will help drive traffic to our social media pages and vice-versa.

The goal of our social media strategy is to increase followers on each of our

accounts and visitation to our website.

In order to assist local organizations and businesses with their social media

strategies, the VCVB will host a social media class in February.

Tourism Marketing Goal:

Drive room nights from FIT (frequent individual travelers) leisure and cor-

porate travelers.

Strategy:

Create a number of programs that include direct mail, targeted email blasts

and sales calls. The VCVB will also provide co-op opportunities to our ho-

teliers to attend consumer trade shows. Resident promotions such as “Be a

Tourist in your Own Backyard” and “Have a Summer of Fun” will be aimed

at getting locals to experience things to do locally during off-peak travel

times. The VCVB will encourage attractions to offer discounts to those

with a Solano County issued drivers license.

Action:

Monthly email blast with information on special events in Vacaville

Sales calls to the travel agents at the AAA call centers

“Have a Summer of Fun” Vacaville School District program

“Be a Tourist in Your Own Backyard” local tourism marketing promo-

tion

Work with the Nut Tree, Premium Outlets, and DVBID to create mar-

keting programs to attract new visitors

Customer Service Goal:

To make Vacaville known as the most customer and visitor friendly desti-

nation in the valley.

Strategy:

Last year the VCVB looked into bringing in a customer service trainer for

a couple of day’s to teach service techniques. Upon further reflection, we

decided that bringing someone in on a one time basis would not allow us to

train all of those in the hospitality industry at one time, it also would not

provide for the regular staffing turnover’s seen by hotel, retail and dining

establishments. Instead, we decided to write our own training. This gives

the VCVB the opportunity to go to the business and provide the training at

their convenience and also allows us to provide the training as staffing

changes.

In addition, to incentivize the staff that participate in our training to contin-

ue providing excellent customer service, we have printed nomination post-

cards. These postcards will be given to the business owner/manage upon

completion of the training. They can then nominate staff members that

they see continually extending great service to customers and guests.

Those nominated will be recognized at our annual tourism lunch in May.

Group Sales & Service

Goal:

Develop a strategy that will increase sales and service leads, bookings and

new client development.

Strategy:

The Vacaville CVB staff will employ several marketing tools to generate new

business including attending key trade shows, conducting sales calls (in per-

son, by phone and email) and sales blitzes, internet prospecting and net-

working.

Actions:

Tradeshows

Pow Wow, May 21—26, San Francisco

Christian Meeting & Convention Association - April

UC Davis Vendor Showcase, Spring, Davis

Sales Blitzes

The VCVB will conduct quarterly sales blitzes with hotel representatives.

These sales blitzes will give both the VCVB sales manager and hoteliers an

opportunity to meet one-on-one with group planners.

Sales Blitzes are scheduled for the following dates;

Sacramento—February 3

East Bay—April 28

Sacramento—October 27

Bay Area—December 15

Email Marketing Campaign

Monthly email marketing blasts will be sent to

group travel planners in the following markets;

Meetings & Events

Tour Groups

Sports Marketing & Sports Commission

Goal:

Market the City of Vacaville’s sports facilities as a viable location to host sport-

ing events and generate room nights.

Strategy:

The Vacaville CVB will work closely with the City of Vacaville Community Ser-

vices Department and facility managers to “sell Vacaville” to sporting groups.

Actions:

Trade Show

TEAMS—Sports Show, October

Sports Commission:

In 2009 the VCVB started the Vacaville Sports Commission. This group was cre-

ated to assist the VCVB in pinpointing sporting groups that would potentially

hold their events in Vacaville and to give us a better understanding of how to

support and service these groups during their stay.

Quarterly meetings of the Vacaville Sports Commission will be held on the fol-

lowing dates;

March 10

June 9

September 15

December 14

Mailings:

The VCVB will send a mailing of our Sports Facility Guide to potential sporting

event planners.

Email Marketing Campaign:

Monthly emails will be sent to sporting event planners inviting them to Vacaville

for their next event.

Advertising:

Sports Travel Magazine

Publications

As internet based research becomes more and more prevalent, the VCVB will continue

to decrease the number of print publications we produce. There are two exceptions to

this rule, the Annual Visitor Guide and our Visitor Map.

Research shows that as people become more tech savvy, they are using the internet for

their travel planning and relying less on print publications. For that reason, we will con-

tinue to put a large emphasis on our website, visitvacaville.com.

While we see that our visitors are doing much of their travel planning online prior to

their visit, we do still see the need for in-market informational materials. For instance,

once a visitor arrives in Vacaville, they are more likely to pick up a visitor guide and

map to help them decide on a place for dinner or an activity to participate in.

In 2011 we will again produce our Annual Visitor

Guide. This year’s piece will be published by

Vacaville Magazine and is a wonderful new part-

nership for us. We are so pleased to be working

with a local firm for this piece. Bucking industry

trend, we will go from a 36 pages to 68 pages.

However, we will drop our print quantity from

30,000 to 15,000. This is due to the fact that our

guide is available to download on our website

(which many do) and that the guide is used more

one a visitor arrives in Vacaville than for pre visit

planning.

Publications

Vacaville Visitor Guide – annual fulfillment piece for the VCVB (15,000 copies)

Rack Card—Quick reference guide to the city to be printed in partnership with the

Vacaville Museum and Nut Tree Village.

Vacaville Visitor Map—The Bureau will print 250,000 maps to be distributed to our

hotels and attractions for use by their guests.

Valuable Vacaville

Part of what has sustained Vacaville during these difficult financial time are the

Vacaville Premium Outlets. Many were still willing to drive from long distances in

order to discount shop.

As the economy continues its slow rebound, most will be looking for values. In

order to provide our visitors with enticing rates and discounts, the VCVB will

begin a new VIP (Visitor Incentive Program) discount program. Along the lines of

a gym membership keytag, the VCVB will distribute

key-tags that are good when shown at participating

retailers and restaurants. In the past we have con-

sidered a printed coupon book, we have decided that

the key-tag will give us the opportunity to change

discounts as needed and not be confined by a print

piece.

Last year, we added a discount tab to our Facebook page named “Hot Deals” the-

se deals are everything from hotel specials to restaurant discounts. We will con-

tinue to expand the range and scope of these discounts. We hope to be able to of-

fer at least a dozen discounts at any one time.

Public & Media Relations The VCVB has worked closely with our Public Relations firm to create a detailed media

communications plan for 2011. In this plan is a list of the press releases that we can

anticipate and the dates for completion and dissemination.

As in previous years, we will continue to work with our local media outlets to promote

tourism, we will distribute our media kit, and respond to changes in the market or in-

dustry with additional releases or stories as appropriate.

Month Tasks Comments

January Sales month! Economical, fun

and exciting shopping excursions.

Special discounts from hotels to

Premium outlets. ManCations. Special tours

to Anheuser Busch,

“ManBaskets” at hotels

for a special number of

those who first stay.

(Could include discounts

for golf, special shaving

cream, and other men’s

toiletries in travel sizes. Girlfriend Getaways Would

provide spa discounts,

shopping and dinner

coupons and Girl Geta-

way Gifts which could

include truffles and/or

women’s travel-sized

toiletries All to Yourself. Would en-

courage visitors to come

to have wineries, golf

clubs, Sacramento River

restaurants, etc. when

places are not crowded.

Special discounts provid-

ed by hotels.

Social Media Class. Invita-

tion to attend a class

given by the VCVB on

social media best prac-

tices.

Also, plan release for Lovers’

Month to be issued mid January Continue effort to complete Kids

Book for release in summer. Release in mid-February for “Just

About Spring Fling”

February

Lovers’ Month! Valentines

spa treatments for two,

dinners for two discounts,

theater ticket giveaways,

Suisun winery tour packets,

Lover Breakfast in Bed at

participating hotels.

Visitor Guide. Announcement

of publication of 2011 visi-

tor guide

Prepare long-term strategy in Febru-

ary for National Tourism Month in

May. Prepare Send out “Just Before Spring Fling”

release

March

Just About Spring Fling Fling off the winter doldrums

and revitalize with a shop-

ping destination journey.

Discounts at Outlets to

purchase the new arrivals

in fashion, eat at restau-

rants that offer discounts

and feature newly-minted

produce starting to come

in, Mani-Pedi to be spring

ready.

Confirm Tourism materials to be

distributed in April to media. Release goes out for Medieval Fan-

tasy release to be held in April.

April

Medieval Fantasy Festival

Look for ways to cross

promote with Downtown

Business Association.

Check into special rates for

visitors to Vacaville, have

fun keepsake items that

will complement the event. Green Businesses & Producers

May Tourism month release goes

out. Begin to create general releases for

summer months. Promote Fiesta Days CTTC Release

May

National Tourism Month. Offer

special tourism information

packets for visitors. Fea-

ture all that is going on in

Vacaville: CreekWalk

concerts, wine stroll, Di-

versity Fair. Tie in with all

for discounts or special

packages. National Tourism Week- Tour-

ism Impacts Family Fan Road Trips in CA.

General release updating summer

activities in June goes out. CTTC Releases

June

Summer travel, unveil kids

book, Golf discounts

Release on summer activities for

July goes out.

July

Summer travel, golf, other sum-

mer activities

Restaurant Week

Last release for end-of-summer ac-

tivities for August. Prepare release about Fall events

such as Oktoberfest, Jazz Festival,

Art, Wine & Food Fest

August

Summer Travel End of summer ideas? Last kiss

to summer events?

Restaurant Week

Prepare release on Jazz Festival,

Art, Wine and Brew Fest, Harvest

Festival and Halloween Stroll

September

Jazz Festival Art, Wine & Brew Hotels to provide fall goodie

bags for first 100 who stay

in participating hotels to

complement events

Restaurant Week

Housekeeping Olympics

Release on Oktoberfest, Halloween

Stroll, Harvest Festival goes out

October

Oktoberfest could feature hotels

offering beer steins or dis-

counts on lodging, dining

Restaurant Week

Thanksgiving theme release goes

out

November

Thanksgiving theme

December

Christmas Tree lighting Special shopping excursion

packages

Prepare for January events with re-

lease

Community Relations Goal:

To increase the awareness of Vacaville as a tourist destination and help locals

understand the benefits of tourism on the local economy.

Strategy:

Work with local media sources, host tourism events, make tourism related

presentations and produce marketing pieces aimed at locals.

Action:

Host the VCVB’s Third Annual Tourism Luncheon to educate the public on

tourism’s impact on the City of Vacaville and share CVB news.

Host the Second Annual Vacaville Restaurant Week to call attention to our

local dining establishments.

Host monthly CRAVE events at restaurants throughout town in efforts to

bring in new dining business.

Distribute “We support tourism in Vacaville” window clings.

Continued marketing support of local events to help increase overall attend-

ance and potential overnight stays.

Work with The Reporter, Vacaville Magazine, KUIC, The Grapevine and oth-

er local media outlets to bring attention to tourism.

Produce a brochure to be distributed to locals in late October asking them to

invite friends and family to visit Vacaville for the holidays. In essence, we

are asking our residents to become our dinner table concierge service.

Plan a “Be a tourist in your own backyard” month where local residents will

be given discounts at local attractions.

VCVB staff will give regular presentations on the services of the CVB and

the impact of tourism on our community to service groups and other non-

profit organizations.

Quarterly Conference Calls with updates on Tourism and CVB. March, June,

September, December

Host a Chamber Wake—Up in July

Visitors Center For many visitors to Vacaville, the Visitor Center is their first introduction

to our lovely city. Our goal is to make those visitors feel instantly welcome

and provide them will all the information necessary to insure a positive stay

in Vacaville.

Guests will be provided with visitor guides, maps or any other information

they may require. We will also act as “Vacaville Concierge” and book hotel

rooms, car rental reservations or tour bookings as needed.

In 2009, a guest computer was added to our lobby. The computer is there

for visitors to check email, get directions or check in for flights.

Funding & Administration

Goal:

Safeguard current funding while generating additional funding through re-

tail and advertising sales. Leverage the bureaus budget through in-kind

donations and co-op marketing. Work with the Board of Directors to make

sure that they are helping secure the bureaus funding and assisting in set-

ting the VCVB’s long term goals.

Strategy:

Ensure that the VCVB Board of Directors, part-

ners, city staff and City Council are continually

aware of our goals, strategic marketing pro-

grams and successes.

Actions:

Meet with both hoteliers and City Council

members on a regular basis to ensure open

communication.

Update the Board of Directors monthly with information on the VCVB

budget, programs and issues.

Create committees as needed to accomplish goals set forth in this plan.

Spread the bureau’s message to anyone who will listen.

Operations Personnel:

The Executive Director is responsible for the day-to-day management and

operations of the VCVB and the implementation of this Business Plan &

Strategy.

The Sales Manager is responsible for generating qualified leads and soliciting

targeted meeting, conference, group tours and sport groups through sales

calls, promotions, telemarketing, direct mail, FAM (familiarization) tours, and

trade show participation.

Our Administrative Assistant acts as support to the Executive Director and

Sales Manager. They are also responsible for maintaining the Visitors Center

and office space including maintaining a comprehensive Calendar of Events,

and the content on the 80on80 website for Vacaville. Additional responsibili-

ties include scheduling and training of all volunteers, and assisting the Exec-

utive Director with bookkeeping and filing.

Volunteers and interns will act as support to all staff members.

Personnel Policies & Procedures and Bylaws will be reviewed on a con-

sistent basis to ensure that the bureau is operating efficiently and is in com-

pliance with all applicable state and federal laws, generally accepted hiring

practices and it ’s own operating policies.

Employee training:

VCVB staff will be provided with the necessary training to keep them updat-

ed on the latest professional standards necessary for their jobs. All staff

members will attend trainings and conferences such as CalTIA’s Conference

on Tourism and Rural Tourism Conference; WACVB’s Tourism Tech Summit,

CEO Forum and Sales Training.

Financials:

The VCVB with the assistance of our bookkeeper, will provide accurate and

timely financial reports to the Board of Directors. Profit and Loss Reports

will be provided to each Board Member at Executive Board Meetings and

General Board Meetings. Annual audits will be completed by our auditor and

results will be provided to the Board of Directors.

Industry Memberships

The VCVB will keep memberships in industry organizations that will allow us ac-

cess to networking and educational opportunities as well as tradeshows where we

can highlight Vacaville. The following are a list of the organizations the VCVB

will retain memberships in during 2011:

Organization Description of Benefits

ABA American Bus Association - membership includes participation in Annual

Tradeshow (Marketplace); educational & networking opportunities; membership

directory; industry news and updates

CalTIA CA Travel Industry Association is the official voice of the CA travel industry -

representation at the state level, industry news and updates on state and feder-

al issues, educational opportunities, membership directory.

CalSAE CA. Society of Association Executives is an organization of association meeting

planners in Sacramento providing education, training programs, services and

networking opportunities.

CVTA Central Valley Tourism Association - the official marketing organization for the

Central Valley, represents 16 counties including Solano; networking; education-

al scholarships; co-op advertising and tradeshow opportunities; listing in

CVTA brochures and marketing campaigns; access to CVTA generated leads

CMCA Christian Meeting & Convention Association is a professional, non-profit Chris-

tian organization of meeting planners.

DMAI Destination Marketing Association International - national membership for

1,300 in the CVB industry; educational resources, networking opportunities.

Membership fees based on budget level

MPI Meeting Professionals International is a global community of meeting and event

planners.

NTA National Tour Association - is a trade organization of thousands of tourism

professionals involved in the growth and development of the packaged travel

industry.

RCMA Religious Conference Management Association - a professional, nonprofit, multi

-faith organization consisting of individuals who are responsible for planning

and/or managing meetings for their religious organizations.

SGMP The Society of Government Meeting Professionals is a professional organization

of persons involved in planning government meetings and events.

TIA The Travel Industry Association serves more that 2,100 members from every

segment of the travel industry. They provide information, representation and

leadership to grow our powerful industry.

TRAFC Travis Regional Armed Forces Committee provides a great opportunity to net-

work.

WACVB Access to DMO information in resource library; numerous educational and net-

working opportunities at the CVB level in CA, WA, OR, NV, and UT

80 on 80

Coalition

Destination Marketing Organizations from the I – 80 Corridor come together to

market the great things to see and do along 80.

Professional Development

WACVB’s Sales Institute Training Program—March 24 & 25, Tempe, Arizona

The two-day Meetings/Conventions Sales Institute Training Programs are for conven-

tion/meetings sales managers and directors of sales. The programs are specifically de-

signed to refine existing techniques, introduce new selling skills, and accelerate the

sales knowledge of sales personnel. The programs are designed and presented by Steve

Steinhart, Steinhart & Associates, and presented in conjunction with the March or April

Tech Summit and the October Annual Meeting. The Association offers an introductory

program (March or April) and an advanced program (October).

CalTIA’s California Travel Summit – June 20 –22, Pasadena, California

The annual CA conference provides a forum to improve individual knowledge and in-

sights of the tourism industry. Professional development sessions are offered aimed at

raising awareness of industry trends, developing marketing strategies and improving

business practices. Attendance at this, the largest of all California tourism events, will

give the VCVB the insight into all aspects of up and coming tourism trends.

WACVB’s CEO Forum – August 11—13, Santa Fe, New Mexico

Bureau leaders address challenges driven by changes in funding sources and resource

allocation, increased accountability and performance measures, technology, and trends;

issues such as marketing messages, funding sources, community support, visitor trends,

and performance deliverables are also discussed. Participation in this forum gives the

VCVB Director opportunity to network with peers as well as learn from others in our

field

Budget Goal:

To function in a fiscally responsible manner that maximizes

return on investment and allows the bureau to focus ener-

gies on its broader mission of economic

development. To increase non – BID revenues to the bu-

reau. To increase the number of overnight visitors to

Vacaville thereby increasing BID revenues.

Strategy:

The VCVB has estimated assessment fee revenues to be

flat in 2011 due to the slow economy. In order to complete items listed in this

plan, the bureau will need to generate additional funds. We intend to do this by

selling advertising in our center and on our website, offering co-op marketing

opportunities and selling retail items in the visitors center.

Budget Overview:

As it will each and every year, the VCVB’s budget has changed from 2011. Each

year we embark on a number of new initiatives and projects. We also tend to do

a number of one time cost projects such as printed materials that will not reoc-

cur.

While travel has not returned to “normal” levels, we have been seeing a steady

increase in travel to Vacaville. We are optimistic that by 2012 we should see the

VCVB BID income on the increase. Any additional funds the VCVB is able to

generate will give us more opportunities to share our city with potential visitors.

About Us The Vacaville, California Conference & Vis-

itors Bureau (VCVB) is a non-profit 501c6

organization funded by Vacaville Hotels

through a Tourism Business Improvement Dis-

trict.

The VCVB is the destination marketing organ-

ization for the City of Vacaville. We promote

the city as the preferred destination for visitors,

meetings, tour groups, sporting and events.

The mission of the Vacaville Conference &

Visitors Bureau is to market the City of

Vacaville as a "first choice" visitor destination

to business and leisure travelers by promoting

an awareness of the City's unique location, im-

age, businesses and industries and by provid-

ing requested support for the City's economic

development efforts.

Our Board of Directors is comprised of hotel-

iers and professionals who have the experience

and willingness to serve the community be-

yond their demanding work schedules. Their

volunteer responsibility includes steering bu-

reau policy, financial oversight, and determin-

ing the course of the Bureau’s future.

CVB Staff

Melyssa Laughlin, Executive Director

Alex Hall, Sales Manager

Julie Sabbagh, Administrative Assistant

Board of Directors

Executive Committee

Chairman:

Andrea McPeak—Courtyard by

Marriott

Vice Chair:

Hemina Patel, Comfort Suites

Treasurer;

Shawn Lum, Vacaville Museum

Secretary;

Kurt Helmke, Fairfield Inn & Suites

Director at Large

Roman Garcia, Best Western Heritage Inn

Board of Directors

Kimberly Davis, Residence Inn

Margo Foster, Westrust

Jennifer Sculatti, Premium Outlets

Robert Brown, Hampton Inn & Suites

Andrew Swanson, Nut Tree Airport

Bill Bollman, STARS Recreation Center

Bruce Newton, Bank of the West (DVBID)

Mark Creffield, Chamber of Commerce

Executive Message

Dear Industry Partners,

The Vacaville Conference and Visitors Bureau (CVB) is pleased to present the organization’s

2010 Annual Report.

The local hotel industry began to experience declines in occupancy in the fall of 2008. The av-

erage daily rate (ADR) in Vacaville in that year was $78.21 and they overall occupancy rate for

the city was 59.2%. Continuing into 2009 more dramatic declines were felt with ADR at $73.02

and occupancy rates at 57.3%.

In 2010 while we began to see occupancy rates begin to climb, however, due to the abundance

of available rooms in the two previous years, hotels were forced to drop rates to unprecedented

lows. 2010 Occupancy was back to 2008 levels at 59.2% but ADR was only $68.57.

Unfortunately this is not a problem confined to Vacaville. It is very much the reality of the in-

dustry as a whole. While we could not be happier that people are traveling once again, these

visitors are the recipients of some amazing rates. Great for the travelers, not so great for the des-

tination.

In addition, the State Per Diem for travel dropped for Solano County from $93.00 to just

$84.00. Since our destination is so heavily dependent on military and government travel, this is

a huge setback.

While this news seems to be all bad, the reality is, all of us have been impacted by the economy

during the past few years. The good news is that people are on the move and traveling again.

This is the first step in the recovery in Vacaville’s tourism industry.

There is no question that the past few years have been difficult, and we are by no means ―there‖

yet, I am very proud of the accomplishments the VCVB has made with a diminished budget.

This plan outlines those accomplishments and some of the highlights of our year. I hope you

will take some time to review the plan. Should you want more information or questions, we are

happy to help!

Thank you for your continued support of the CVB.

Melyssa Laughlin

Executive Director

Vacaville Conference & Visitors Bureau

visitvacaville.com

Sales Overview The Vacaville Conference & Visitors Bureau Sales

Manager solicits group meetings, events, sporting

groups and tour prospects to generate business opportu-

nities (Leads) on behalf of our stakeholders. Our sales

manager secures these opportunities, while the stake-

holders are responsible to ―close the sale‖ for their re-

spective business. Stakeholders who benefit from our

Lead generating activities primarily include Vacaville

hotels, event venues, and event service providers.

By focusing on the group traveler vs. the individual

traveler, the VCVB Sales Manager puts forward oppor-

tunities that represent higher spending and that fulfill

the needs of stakeholders for off-peak business

(weekend, low season, etc.). The primary markets we

target include:

Corporate Meeting Planners

Association & Government Meeting Planners

Sporting Event Organizers

Religious Meeting Planners

Domestic & International Tour Operators

Proactive sales efforts we conduct to reach our markets

include sales calls, sales blitzes, tradeshows, familiari-

zation tours, and direct marketing activities.

Our Sales Manager, Audrey, attended four (4) major

trade shows, held four (4) sales blitzes and made nu-

merous in person and telephone sales calls to ―Sell

Vacaville‖. These efforts are resulting in expanded

exposure and recognition of Vacaville as a desirable

meeting, event, tour and sports destination. We enjoyed

many positive successes in building relationships with

key decision makers in these markets.

Trade Shows The VCVB exhibits at tradeshows to create awareness

of our destination, make new contacts and enhance

relationships with existing contacts. In 2010 the VCVB

participated in the TEAMS Sports Tradeshow, Go

West Tour Group Show, The Bay Area Travel Show

for consumers and CMCA, a trade show for Christian

Meeting Planners. The VCVB also had a booth at the

Tribute to Seniors Event.

A Few of the Presentations Given

Genentech

Soroptimist

Rotary (both clubs)

Council of Major Employers UC Davis Meeting Planners Kaiser

2010 Sales Results

Leads Generated 29

Leads Booked 14

Booked Room

Nights

1,879

Projected Economic

Impact

$234,875.00

Leads by Market Segment

A sso ciat io n

C o rpo rate

Go vernment

Spo rts

T o ur & T ravel

Marketing & Public Relations

Visitor Guide

The Vacaville Visitor Guide is once again in production. We are pleased to announce our new part-

nership with Vacaville Magazine. Vacaville Magazine will publish 15,000 copies of our visitor

guide each January. We have decreased the number of guides being printed by nearly half this year.

We have found that as more and more people are doing their travel research online, the number of

guides needed for visitor request fulfillment has dropped. On the other hand, one of the most visited

sections of our website is the download a visitor guide page. With the very high cost of mailing, we

are happy that visitors are choosing to download needed information.

The one area of usage that has not seen declines in the in-market usage. Visitors picking up the

guide in our hotels, attractions and visitors center is at an all time high.

As in past years, we will continue to use this piece as our main printed sales tool and distribute it at

trade shows, through sales calls, CA Welcome Centers and fulfillment.

Press Releases

A total of 26 press releases were researched, written and distributed to targeted media.

Tourism Luncheon

During National Tourism Week, the VCVB hosted our second Annual Tourism Luncheon. The

event was held at The Vacaville Opera House and featured tourism consultant and researcher,

Berkeley Young of Young Strategies.

Speaking Engagements

VCVB Staff made a number of presentations to service clubs and other groups throughout the city.

Presentations included information on the VCVB and what we do, how we do it, and the impact of

tourism on the City of Vacaville.

Website & Social Media

www.VisitVacaville.com The New VCVB Website has been a big hit. Since

we launched the new site, our traffic has increased

by ____. We have added a number of new capabili-

ties and continue to make changes and additions

regularly. Some of the new features include;

Interactive Calendar of Events

Social Media Feeds

Hotel Booking Engine through ARES

E-Newsletter

Database capabilities

Tailored email marketing campaigns

Site is fully updatable by VCVB staff.

Social Media

The VCVB began an aggressive social me-

dia marketing campaign in 2009 that contin-

ues today. This campaign consists of a Face-

book FAN page, Linked IN profiles, a Twit-

ter Account, and a Flickr

Account in which we hosted the first online

City of Vacaville & VCVB photo contest!

The VCVB posted events and Vacaville

news to Facebook and Twitter daily!

Social Media

―Social media can serve as a powerful tactical tool for destination marketing organizations.

Whether its purpose is for branding or primarily to stimulate consumer traffic, it is most

effective when incorporated into a comprehensive effort that dovetails with the DMOs

overall marketing plan. With a well thought out plan, a DMO can benefit from the low cost and

highly interactive nature of social media.‖ Cindy Estis Green

The Vacaville CVB has incorporated the above tactics into our Social Media Plan and are ag-

gressively perusing potential visitors by engaging them on Facebook, Twitter, You Tube and

Flickr. Each of these mediums are used daily to increase awareness of Vacaville as a destination

as well as inform the local community about events happening around the city.

Advertising

The VCVB placed paid advertisements in a number of publications in order to

bring more awareness to Vacaville as a destination. Some of the publications

were: The California State Visitor Guide, The Central Valley Visitor Guide,

Sports Travel Magazine, Bus Tours Magazine, RV Journal and VIA Magazine

with the DVBID and Premium Outlets.

Odds N’ Ends Made changes to VCVB Bylaws. These changes included updates to the Board of Directors sec-

tion. The VCVB Board of Directors will now be made up of eight hoteliers and six tourism stake-

holders. These changes allow the VCVB to receive input from a variety of voices, not solely hotel-

iers.

Introduced the new VCVB logo and slogan ―Pick Your Passions‖

Have run an ongoing volunteer drive to get additional assistance in the visitors center. The goal is

to have volunteers work the visitors center on weekends and evenings.

Participated in 80 on 80 committee. This goal of this group is to market the cities and events on

Highway 80.

Melyssa continued her two year term as President of the Central Valley Tourism Association and

attended monthly meetings.

Attended Chamber of Commerce and other community events

Attended educational conferences, Tourism Tech Summit and the Western Association of Con-

vention & Visitors Bureau’s CEO Forum

Held a Board Planning Conference to collaborate on the bureau’s 2011 Marketing & Business

Plan.

Hosted the 2010 Senior Games, January 15 –25.

Jennifer Sculatti from the Premium

Outlets sharing a booth with the VCVB Mayor Augustine proclaiming May 8-16

at the Bay Area Travel Show Tourism Week in Vacaville

DRAFT

Attachment C

HOTEL BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT This Agreement dated as of the ____ day of _________, 2011, (hereinafter “Agreement”) is entered into by and between the CITY of VACAVILLE, a municipal corporation organized and existing under and pursuant to the Constitution and laws of the State of California (hereinafter “City”), and the VACAVILLE CONFERENCE AND VISITORS BUREAU, INC., a California nonprofit mutual benefit corporation organized and existing under and pursuant to the laws of the State of California (hereinafter “VCVB”), with reference to the following facts:

RECITALS A. WHEREAS, following properly noticed and publicly held meetings and hearings, the City

Council of the City of Vacaville has established a Parking and Business Improvement Area to be known as the Hotel Business Improvement District (hereinafter “District”), pursuant to Section 36500 et seq. of the California Streets and Highways Code (hereinafter “Act”), by and through the adoption of Ordinance No.1702 on February 24, 2004; and

B. WHEREAS, Pursuant to the aforementioned Ordinance and enabling law, benefit

assessments have been levied upon the various businesses located within the District; and C. WHEREAS, such assessments levied and collected by City shall be used only for the

purposes set forth in Ordinance No. 1702; and D. WHEREAS, in order to carry out the purposes set forth in Ordinance No. 1702 and to put the

funds collected pursuant thereto to the best and most efficient use to benefit the members of the District, City requires assistance in implementing projects and activities, and managing use of the funds; and

E. WHEREAS, VCVB, being composed of members of the District, has the skill, knowledge and

expertise to efficiently and effectively implement projects and activities and manage the use of the funds as set forth in Ordinance No. 1702; and

F. WHEREAS, the City Council of the City of Vacaville has determined that the public interest,

convenience, and necessity require the execution of this Agreement to provide the services set forth herein.

NOW, THEREFORE, City and VCVB in consideration of the recitals, mutual promises, covenants, representations and agreements set forth below, hereby promise, covenant, agree and represent as follows:

Section 1. TERM OF AGREEMENT 1.1 Notwithstanding the date of execution of this Agreement, the Term of this Agreement shall

be from April 1, 2011 to and including March 31, 2012, unless terminated sooner pursuant to the terms hereof.

1.2 Either party to this Agreement may terminate this Agreement, in advance of the expiration of the term of this Agreement, for cause, by giving sixty (60) days prior written notice to the other. Such termination shall be effective on the sixty-first (61st) day after mailing of such notice. If the reason for termination of this Agreement is the breach of this Agreement by the non-terminating party, the terminating party shall give the non-

DRAFT terminating party notice of breach of this Agreement and a fifteen (15) day notice to cure such breach. The notice shall start to run on the date the notice is placed in the mail. The notice shall be mailed via certified mail or overnight mail or by facsimile with a copy sent regular mail through the U.S. Postal Service. In the event that the breach is not cured within the fifteen (15) day cure period, then the terminating party may give notice of termination as set forth above.

1.3 If this Agreement is terminated pursuant to 1.2 above, the members of the Executive/General Boards set forth in Section 2.8, below, shall remain as members of the Advisory Board for the District.

Section 2. VCVB RESPONSIBILITIES 2.1 VCVB shall render the professional services necessary to fulfill the purposes of the District

as set forth in Ordinance 1702, including, but not limited to, preparation, coordination and implementation of an effective business plan (such business plan shall consist, in part, of project and program development, implementation, and administration), and preparation of plans and reports required by the terms and conditions of this Agreement.

2.1.1 VCVB shall cooperate and coordinate with the City Manager or such personnel as the City

Manager designates (hereinafter “City Manager”) in fulfilling its obligations under this Section and this Agreement.

2.2 VCVB shall review and if necessary revise or augment its Articles of Incorporation and By-

Laws to include detailed policies and procedures covering fiscal management and organizational responsibilities. Such policies and procedures shall conform to the requirements of all Federal, State and Local laws and regulations, including, but not limited to, Ordinance No. 1702, and industry standards for operation of a community based non-profit organization.

2.3 Before the commencement or implementation of any activities under this Agreement, or

expenditure of funds received by the District pursuant to this Agreement, said activity or expenditure must be in accordance with the approved VCVB 2011 Business and Marketing Plan (hereinafter “Business Plan”), attached hereto as Exhibit A, and incorporated herein by this reference, including any approved updates or revisions as described in the progress report required under item 2.4.2, below.

2.4 VCVB shall submit to the City Manager the Business Plan, reports and amendments thereto, as set forth below on the dates set forth below, and such other information as the City Manager may request from time to time. Prior to submitting the Business Plan or amendments thereto to the City Manager, VCVB shall submit the Business Plan or amendments thereto to the District Advisory Board for approval. VCVB shall not submit the Business Plan or amendments thereto to the City Manager if such document(s) have not been approved by the District Advisory Board.

2.4.1 By December 31 of each year, VCVB shall submit a detailed year-to-date report (“Annual Report”) of all activities, budgets and schedules under the existing Business Plan and the Business Plan for the following fiscal year, including, but not limited to, detailed goals of the VCVB, a schedule, and a budget and all documentation required by section 36533 of the Act, and in compliance with all other pertinent provisions of the Act.

2.4.2 By the end of each quarter (every three months) of the term of this agreement, VCVB shall submit a detailed progress report of all activities, budgets versus expenditures and schedules under the existing Business Plan/Budget.

DRAFT 2.4.3 By May 15, of each year, VCVB shall submit a detailed statement of income and

expenses of VCVB covering the previous fiscal year, audited by an independent Certified Public Accountant.

2.4.4 VCVB responsibilities pursuant to this Paragraph 2.4, and all of its subparts, shall be performed in conformance with accepted industry standards and subject to the sole reasonable satisfaction of the City Manager.

2.5 VCVB shall administer and implement the entire Business Plan in a prudent manner within the budget incorporated in the Business Plan. VCVB shall contract for any support services as required, and shall pay for any and all such expenses as may be necessary for the timely completion of work performed in accordance with and in furtherance of this Agreement, Ordinance No. 1702 and the Business Plan.

2.5.1 Obligations or expenditures for items not budgeted in the Business Plan shall not be paid

through assessments collected for the District.

2.6 VCVB shall maintain ongoing communication with the members of the District and the City

which shall include, but not be limited to, holding an annual public meeting to be noticed in writing to all assessed business establishments in the District. This meeting will be conducted in the community in order to allow the business establishments to familiarize themselves with VCVB functions and to inform VCVB of their concerns and desires. A representative of the City Manager’s office may attend as a member of the panel to provide information as required.

2.7 VCVB shall maintain tax-exempt status with the United States Internal Revenue Service and the California State Board of Equalization for the term of this Agreement. VCVB shall provide documentation of its tax-exempt status to the City prior to any disbursement of any funds to VCVB pursuant to this Agreement.

2.8 The VCVB General Board’s voting members shall be comprised of those members as set

forth in Ordinance No. 1702 and shall serve as the District’s Advisory Board. The voting members of the General Board shall include, but not be limited to, VCVB’s Executive Board, comprised of the duly elected officers of VCVB, and the City’s Director of the Housing & Redevelopment Department, or his or her designee (as a non-voting member). The General Board may include other non-voting members at the discretion of VCVB, however, those non-voting members shall not be members of the District’s Advisory Board. . Notwithstanding the provisions of the VCVB by-laws as may be amended from time-to-time, the VCVB General Board may not meet to discuss business of the District unless there is a quorum and a majority of the voting members present consist of businesses subject to the District assessment.

2.9 VCVB shall pay to City all standard City fees, including but not limited to, fees or service

charges for photocopy and reproduction requests and generation of real property, parcel or business ownership lists, required for the administration of the District.

2.10 VCVB understands and acknowledges that VCVB and its Boards and committees are subject to all applicable federal, state and local laws, rules and regulations including, but not limited to those relating to conflicts of interest, open meetings and public records, and hereby agrees to comply with any and all such laws, rules and regulations.

2.11 VCVB, and its agents, subcontractors, and consultants, if any, shall be required to obtain

all necessary documentation, certificates, licenses, and permits required for doing business in the City, including, but not limited to, a City of Vacaville business license.

DRAFT

3.3 The City Manager shall review VCVB’s Annual Report.

Section 3. CITY RESPONSIBILITIES 3.1 The City shall be responsible for mailing all assessment billings, for collecting the

assessment and for authorizing disbursement of funds collected to VCVB in accordance with the terms and conditions of this Agreement and Ordinance No. 1702.

3.2 Refunds and Adjustments. In the event of a dispute over the assessments, the City

reserves the right to retain a sum equal to the amount of assessments known to be in dispute until such claims or disputes are resolved, as a contingency fund for the processing of valid claims for refunds or adjustments submitted to the City by business establishments within the District. The City’s standard policy for processing claims for refunds or adjustments shall apply.

3.4 City shall disburse funds monthly by the 15th of each month based on the total District

assessments collected in the previous month. In addition, the disbursement made by the 15th of December shall include any remaining District assessments collected but not yet disbursed by the City. Continuing monthly disbursals are at the discretion of the City Manager and may be suspended, at his or her discretion, should VCVB fail to meet the terms and obligations of this Agreement.

3.5 Certain types of information obtained and possessed by the City including, but not limited

to certain tax data, may be confidential information and if so determined by the City Attorney, will not be made available to VCVB, unless required by law or a court order.

3.6 The City recognizes the voting members of the VCVB General Board in addition to the

non-voting Director of Housing and Redevelopment or his or her designee, as the District Advisory Board within the meaning of that term as referenced in Section 36530 of the Act and Ordinance 1702, subject to further action by the City Council.

Section 4: DISBURSEMENTS 4.1 Disbursements of District assessments collected shall occur as set forth in Section 3.4,

above. If VCVB dissolves itself prior to or upon the expiration of this Agreement, any unexpended monies will be returned to the City.

4.2 Prior to disbursement of any District assessments to VCVB, VCVB shall submit duplicate reports as required under 2.4.1 and 2.4.2, to the City Manager. In addition to the requirements within the referenced sections, each such report shall:

Include the supporting documentation of expenditures incurred in the previous period and, if applicable, an itemized request for disbursement. Said reports shall be approved by the Director of Housing and Redevelopment prior to the disbursement of any funds or the commencement of any District renewal activities.

Section 5. NOTICES 5.1 Notice to the parties shall, unless otherwise requested in writing, be sent to:

City: City of Vacaville Attn: Housing & Redevelopment Department 40 Eldridge Avenue, Suite #7 Vacaville, CA 95688

DRAFT VCVB : VACAVILLE CONFERENCE AND VISITORS BUREAU, INC. Attn: Chairman

1671 East Monte Vista Avenue, Suite 112 Vacaville, CA 95688

Section 6. OWNERSHIP OF DOCUMENTS 6.1 The work product prepared or acquired by VCVB pursuant to this Agreement, including,

but not limited to, any and all data, documents, memoranda, sketches, drawings, photographs, audio tapes, video tapes, computer disks, designs, plans, reports investigations, and materials, (collectively and individually, the “Work Product”), shall be and shall remain property of the City for the exclusive use of the District. VCVB shall have the right to retain copies of the Work Product. VCVB acknowledges that the Work Product shall be and shall remain confidential, and shall not be made available to any individual or organization without the prior written consent of the City. The Work Product shall, upon demand of the City, be delivered to the City without additional cost or expense to the City.

Section 7. CONFLICT OF INTEREST 7.1 For the duration of this Agreement, no VCVB officer, member, or employee shall contract

to perform consulting or other services of any kind for the District without prior written consent of the City. In addition, neither VCVB members nor employees, if any, may enter into any contract on behalf of VCVB, or vote on any District matters, when such contract or matter would be of financial benefit to the member or Director over and above the general financial benefit to all businesses in the District.

7.2 This section in no way modifies, changes or supersedes any applicable federal, state or local law regarding conflicts of interest, and to the extent applicable, VCVB agrees on its behalf and on behalf of its officers, directors, employees, and agents, to avoid all conflicts of interest in performance of this Agreement.

Section 8. RECORDS 8.1 In accordance with generally accepted accounting principles, VCVB shall maintain full and

complete records of services performed, revenues received and expenditures made under this Agreement. Such records shall be open to the inspection of the City at any time upon request of City’s City Manager or his or her designee, and shall be maintained for a period of at least four years, or longer if required by law, following the expiration or termination of this Agreement.

8.2 The records maintained by the VCVB shall include all receipts for expenditures incurred.

The City Manager reserves the right to perform a contract compliance audit at any time. VCVB agrees to keep all receipts and other supporting documents available for inspection during said audits.

Section 9. INDEPENDENT CONTRACTOR 9.1 It is understood and agreed that VCVB, its officers, directors, members, employees,

agents and volunteers, in the performance of the work and services agreed to be performed by VCVB, shall act as and be an independent contractor and not an agent or employee of City; and, as an independent contractor, VCVB, its officers, directors, employees and agents, shall obtain no rights to retirement benefits or other benefits that accrue to City's employees and VCVB, on its behalf and on behalf of its officers, directors, employees and agents, hereby expressly waives any claim it may have to any such rights.

DRAFT Section 10. EQUAL OPPORTUNITY PROGRAM 10.1 Nondiscrimination and Affirmative Action. VCVB shall comply with the applicable

nondiscrimination and affirmative action provisions of the laws of the United States of America, the State of California, and the City. In performing this agreement, VCVB shall not discriminate in its employment practices against any employees or applicant for employment because of such person’s race, religion, national origin, ancestry, sex, sexual orientation, age, physical handicap, marital status or medical condition.

Section 11. AMENDMENTS 11.1 City and /or VCVB periodically may request changes in the scope of services to be

performed hereunder. Such changes, which are mutually agreed upon by and between City and VCVB, shall be incorporated in written amendments to this Agreement duly executed by both parties.

11.2 This Agreement may not be amended except in writing by mutual agreement and duly

executed by both parties. A failure to object to a breach of this Agreement shall not constitute an amendment thereof, nor shall such failure constitute a waiver of any term of this Agreement, nor shall it constitute a waiver of any future breach of the Agreement.

Section 12. INSURANCE 12.1 VCVB agrees to have and maintain the policies of insurance set forth in Exhibit B, entitled

"INSURANCE," which is attached hereto and incorporated herein by this reference. All policies, endorsements, certificates and/or binders shall be subject to approval by City’s Risk Manager as to form and content. The policies shall include a waiver of subrogation endorsement by which VCVB’s insurer agrees to waive all rights of subrogation against City, its officers, officials, employees and volunteers for losses arising from work performed by VCVB for City These requirements are subject to amendment or waiver if so approved in writing by City’s Risk Manager. VCVB agrees to provide City with a copy of said policies, endorsements, certificates and/or binders before work commences under this Agreement.

Section 13. INDEMNIFICATION 13.1 VCVB shall indemnify and hold harmless City, its officers, officials, employees and

volunteers from and against all actions, causes of actions, damages, costs, liabilities, claims, losses, judgments, penalties and expenses of every type and description, including without limitation any fees and/or costs reasonably incurred by City’s staff attorneys or contract attorneys and any and all costs, fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “liabilities”), arising out of or in connection with any negligent act or omission, misconduct or other legal fault of VCVB, its directors, officers, members, employees, subconsultants, subcontractors, agents or volunteers in connection with the performance or nonperformance of this Agreement, whether or not City accepted or approved any service or work product performed or provided by VCVB hereunder, and whether or not such liabilities are litigated, settled or reduced to judgment. In the event that a final decision or judgment allocates liability by determining that any portion of damages awarded is attributable to City’s negligence or willful misconduct, City shall pay the portion of damages which is allocated to City’s negligence or willful misconduct, provided that City shall not be liable for any passive negligence of City, its officers or employees in reviewing, accepting or approving any service or work product performed or provided by VCVB.

DRAFT 13.2 Obligation to Defend. VCVB shall, upon City’s request, defend with counsel approved by

City (which approval shall not be unreasonably withheld), at VCVB’s sole cost and expense, any action, claim, suit, cause of action or portion thereof which asserts or alleges liabilities resulting from any allegedly negligent act, omission, misconduct or other legal fault of VCVB, its directors, officers, members, employees, subconsultants, subcontractors, agents or volunteers in connection with the performance or nonperformance of this Agreement, whether or not such action, claim, suit, cause of action or portion thereof is well founded.

13.3 Insurance Policies; Termination. Acceptance of insurance certificates or endorsements

required under Exhibit B of this Agreement does not relieve VCVB from liability under this section 13, or any subparts hereto, and shall apply to all damages and claims of every kind suffered, or alleged to have been suffered, by reason of VCVB’s negligence, misconduct, or other legal fault regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. The provisions of this section 13, and all of its subparts, shall survive any termination or expiration of this Agreement.

Section 14. ASSIGNMENT 14.1 VCVB covenants and agrees that it will not assign or transfer its rights or obligations

under this Agreement, either in whole or in part, without first obtaining the written consent of City, which consent may be granted or denied at the sole and absolute discretion of City. Any attempt by VCVB to assign or transfer its rights or obligations without such prior written consent shall be null and void and may, at the option of City, automatically terminate this Agreement.

Section 15. ASSETS OF THE DISTRICT

15.1 In the event that the District expires, is terminated or is otherwise discontinued, then the existing assets of the District shall be the property of the City. However, said assets shall only be used (1) to pay the City any outstanding sums due to it by the District and (2) to disburse the remaining assets after payment to City to the then current members of the District on a pro-rata basis.

Section 16. SEVERABILITY

16.1 If any clause, provision, or section of the Agreement shall be ruled invalid by any court of competent jurisdiction, the invalidity of such clause, provision, or section shall not affect any of the remaining provisions hereof.

Section 17. WAIVER

17.1 Waiver by the City of any breach of any term, covenant or condition herein contained shall not be deemed a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained.

Section 18. SECTION HEADINGS

18.1 The section headings of the Agreement are for the convenience and reference only, and shall in no way be deemed to define, limit, or add to the meaning of any provision of the agreement.

DRAFT Section 19. GOVERNING LAW/COMPLIANCE WITH LAWS

19.1 This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. The parties hereto agree to be bound by all federal, state and local laws, ordinances, regulations and directives pertaining to the services to be performed hereunder. All disputes arising hereunder shall be resolved in state courts of the County of Solano, or where otherwise appropriate, exclusively in the United States District Court, Eastern District of California, Sacramento, California.

Section 20. SIGNATOR’S WARRANTY 20.1 Each party warrants to each other party that he or she is fully authorized and competent to

enter into this Agreement in the capacity indicated by his or her signature and agrees to be bound by this Agreement.

Section 21. COUNTERPARTS

21.1 The Agreement may be executed in counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Section 22. ENTIRE AGREEMENT

22.1 This Agreement represents the entire and integrated agreement between the City and VCVB and supersedes any and all prior negotiations, representations, or agreements, either oral or written.

WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.

"VCVB" "CITY" VACAVILLE CONFERENCE AND CITY OF VACAVILLE, a municipal VISITORS BUREAU, Inc., a California Corporation nonprofit mutual benefit corporation By: _____________________________ By: _____________________________ Andrea McPeak Laura C. Kuhn Chairman City Manager Date: ______________________ Date: ______________________

APPROVED AS TO FORM:

__________________________

Melinda C. H. Stewart Assistant City Attorney

Exhibit A

VCVB 2011 Business and Marketing Plan/Budget Page intentionally left blank. This document was submitted to the Council at the February 22, 2011 meeting. Document will be inserted into finalized agreement prior to signature.

Exhibit B

City of Vacaville ADDENDUM INSURANCE REQUIREMENTS Service Contract VCVB shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the VCVB, his/her agents, representatives, employees or subcontractors. Minimum Scope of Insurance: Coverage shall be at least as broad as:

1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General liability; or Insurance Services Office Commercial General Liability coverage ("Occurrence" Form CG 0001).

2. Insurance Services Office Form No. CA 0001, covering Automobile Liability, Code 1

(any auto) or Code 8, 9 if no owned autos.

3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employer's Liability insurance.

4. Professional Liability (Errors and Omissions) Insurance appropriate to the VCVB’s

business. Minimum Limits of Insurance: VCVB shall maintain limits no less than:

1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury

and property damage.

3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident.

4. Professional Liability (Errors and Omissions)$1,000,000 per occurrence or claim,

$2,000,000 aggregate. Deductibles and Self-Insurance Retentions:

Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured

retentions as respects the City, its officers, officials, employees and volunteers; or the VCVB shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions: 1. The general liability policy is to contain, or be endorsed to contain, the following provisions:

a. The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the VCVB; products and completed operations of the VCVB; premises owned, occupied or used by the VCVB; or automobiles owned, leased, hired or borrowed by the VCVB.

b. The VCVB's insurance coverage shall be primary insurance as respects the City, its

officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, it officers, officials, employees and volunteers shall be excess of the VCVB's insurance and shall not contribute with it.

c. Any failure to comply with reporting provisions of the policies shall not affect coverage

provided to the City, it officers, officials, employees or volunteers.

d. The VCVB's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

2. Workers' Compensation and Employers Liability Coverage: The VCVB's insurer shall agree

to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the VCVB for the City.

3. All coverage’s: Each insurance policy required by this clause shall be endorsed to state

that coverage shall not be canceled, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII. Verification of Coverage: VCVB shall furnish the City with original certificate and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements stated in this clause. All certificates and endorsements are required to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting coverage required by these specifications at any time. All insurance documents are to be sent to: City of Vacaville Risk Management Division 650 Merchant Street Vacaville, CA 95688

Subcontractors: VCVB shall include all subcontractors as insureds under its policies or shall furnish certificate and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the provisions stated herein.

2011 Projected Income & Expenses

FY 2010 2011 Budget 2010 vs

2011

Starting Balance 80,000.00 67,825.00 11,860.00

Income

40000 BID Assessment Fees 220,000.00 230,000.00 10,000.00

40100 Miscellaneous Income 500.00 500.00 0.00

40200 Advertising Sales 16,500.00 4,500.00 -12,000.00

41000 Interest Income 1,000.00 300.00 -700.00

Total Income 238,000.00 235,300.00 -2,700.00

Expense

60000 Operations

60010 Accounting & Payroll Services

60020 Bookkeeping 4,000.00 4,160.00 160.00

60030 CPA -Audit 4,000.00 4,000.00 0.00

Tax Preperation 2,000.00 2,000.00 0.00

60040 Computers/Office Equip 3,000.00 500.00 -2,500.00

60050 Office Furniture 2,100.00 1,000.00 -1,100.00

60060 Office Supplies 2,000.00 2,000.00 0.00

60070 Software/ Licences 500.00 250.00 -250.00

60080 Stationary/Letterhead/Buisness Cards 200.00 100.00 -100.00

60090 Insurance

60100 DNO 1,500.00 1,500.00 0.00

60110 General Liability 800.00 800.00 0.00

60120 Workers Compensation 900.00 850.00 -50.00

60130 Legal Services 50.00 50.00 0.00

60140 Mileage 7,000.00 6,500.00 -500.00

60150 Misc. Office Expenditures/Bank Service Charges 700.00 600.00 -100.00

60160 Postage & Delivery 1,600.00 1,600.00 0.00

60170 CAM FeesRent

60180 Cam Fees 4,000.00 3,000.00 -1,000.00

60190 Fire & Casualty Insurance 500.00 500.00 0.00

60200 Property Tax 2,500.00 2,500.00 0.00

60210 Storage Facility Rental 1,400.00 1,620.00 250.00

60220 Repairs & Maintenance 500.00 500.00 0.00

60230 Salaries & Benefits

60240 Executive Director 62,500.00 63,750.00 1,250.00

60240 Sales Manager 50,000.00 44,000.00 -6,000.00

60240 Administative Assistant 22,000.00 33,245.00 11,245.00

60250 Payroll Taxes 13,000.00 13,000.00 0.00

60260 Benefits Package 7,800.00 6,000.00 -1,800.00

60270 Human Resources 300.00 300.00 0.00

60280 Telephone

60290 Local, Long Distance, FAX 2,500.00 2,500.00 0.00

60300 Cellular 1,300.00 1,000.00 -300.00

60310 Utilities 1,500.00 1,200.00 -300.00

Attachment E Revised Budget

60000 Total Operations 200,150.00 199,025.00 -1,095.00

61000 Marketing & Promotion

61010 Meetings, Meals & Entertainment

61020 Chamber of Commerce 500.00 500.00 0.00

61030 CVTA 300.00 400.00 100.00

61040 80 on 80 150.00 0.00 -150.00

TRAFC 200.00 200.00 0.00

61050 General 1,000.00 2,000.00 1,000.00

61060 Hospitality 1,500.00 1,500.00 0.00

61070 Industry Memberships

61080 ABA 500.00 475.00 -25.00

61090 CalTIA 600.00 550.00 -50.00

61100 CalSAE 350.00 265.00 -85.00

61110 CVTA 350.00 350.00 0.00

61120 CMCA 250.00 250.00 0.00

61130 DMAI 700.00 700.00 0.00

61140 NTA 600.00 640.00 40.00

61150 RCMA 100.00 100.00 0.00

61160 US Travel 750.00 800.00 50.00

61170 WACVB 730.00 550.00 -180.00

TRAFC 135.00 135.00 0.00

SGMP 450.00 350.00 -100.00

MPI 375.00 375.00 0.00

61180 Market Research 11,000.00 2,500.00 -8,500.00

61190 Advertising

61210 Bus Tours Magazine 500.00 0.00 -500.00

61220 Central Valley Visitor Guide 0.00 0.00 0.00

61230 State Visitor Guide 2,800.00 2,650.00 -150.00

61240 Reunions Magazine 500.00 0.00 -500.00

61250 Sports Travel Magazine 600.00 0.00 -600.00

61260 VIA Magazine 0.00 0.00 0.00

TripAdvisior DMO Page 0.00 2,700.00 2,700.00

Local Advertising Programs 0.00 2,500.00 2,500.00

Misc. Advertising 0.00 1,200.00 1,200.00

61270 Photography/Videography 1,500.00 500.00 -1,000.00

61280 Professional Development/Training

61290 Conference on Tourism 1,000.00 1,300.00 300.00

61310 WACVB CEO Forum 1,500.00 1,700.00 200.00

61320 WACVB Sales Training 0.00 1,200.00 1,200.00

61330 WACVB Tech Summit 2,200.00 0.00 -2,200.00

61340 Sales Events 400.00 0.00 -400.00

61350 Promotional Giveaways 1,000.00 1,000.00 0.00

Retail Items 0.00 1,500.00 1,500.00

61360 Sponsorships 500.00 500.00 0.00

61370 Trade Subscriptions/STR Reports 0.00 2,000.00 2,000.00

61380 Publications

61390 Visitor Guide 0.00 15,000.00 15,000.00

Attachment E Revised Budget

61420 VIP Discount Cards 16,100.00 1,200.00 -14,900.00

61430 Rack Card 1,750.00 0.00 -1,750.00

61440 Local Brochure 2,235.00 1,000.00 -1,235.00

Padded Maps 0.00 3,800.00 3,800.00

Misc. Print 0.00 3,000.00 3,000.00

61450 Sales Blitz

61460 Sacramento 250.00 250.00 0.00

61470 East Bay 250.00 250.00 0.00

61480 Sacramento 250.00 250.00 0.00

61490 East Bay 250.00 250.00 0.00

61500 Trade Shows

61510 CMCA 3,200.00 3,000.00 -200.00

61520 Go West/Pow Wow 2,600.00 2,200.00 -400.00

61530 TEAMS 3,200.00 3,200.00 0.00

61550 Tribute to Seniors 300.00 0.00 -300.00

UC Davis Vendor Show 200.00 200.00 0.00

61560 Trade Show Presentation & Banners 1,000.00 1,000.00 0.00

61600 Press Relations 6,000.00 6,000.00 0.00

61610 Website/Internet

61620 Constant Contact 450.00 260.00 -190.00

61630 Hosting/Domain Registation 200.00 200.00 0.00

61640 IDSS 3,000.00 2,400.00 -600.00

61650 Maintenance 15,000.00 16,000.00 1,000.00

61660 Pay Per Click 2,400.00 2,000.00 -400.00

61670 Page Flip Media 0.00 500.00 500.00

Social Media Promos 3,000.00 500.00 -2,500.00

61680 National Tourim Week Events

61700 Luncheon 6,000.00 4,000.00 -2,000.00

Hospitality Mixer 0.00 1,000.00 1,000.00

Housekeeping Olympics 0.00 500.00 500.00

Quartlerly Conference Call Updates 0.00 250.00 250.00

Vacaville Restaurant Week 0.00 2,500.00 2,500.00

61720 80 on 80 2,000.00 0.00 -2,000.00

61740 Sports Facility Subsidy Fee's 10,000.00 2,000.00 -8,000.00

61000 Total Marketing & Promotion 112,675.00 104,100.00 -2,790.00

Total Expense 312,825.00 303,125.00 -3,885.00

Projected Net Income -74,825.00 -67,825.00

Starting Balance 80,000.00 -67,825.00

Ending Balance/Rollover 5,175.00 0.00

Certificate of Deposit 29,400.00

Money Market 6,900.00

Attachment E Revised Budget